TaxTMI 
TaxTMI 
2004 (9) TMI 39
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....e appeals against the assessee. In the appeal for the assessment year 1992-93 the question of law which arises is as under: "Whether the Tribunal was right in law in holding that interest amounting to Rs. 6,63,275 accrued to the assessee during the previous year relevant to the assessment year 1992-93 was includible in its total income?" A similar question arises for the assessment year 1991-92. In the instant case, it appears that there was a contract between the appellant and the New Delhi Municipal Committee (for short "the NDMC"). There were disputes about the implementation of the contract in time and the default committed by the NDMC. We need not discuss these issues, suffice it to say that ultimately the matter was referred to the....
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....ssment year 1995-96. These amounts were duly brought to tax in the previous year relevant to the assessment year 1995-96. These facts are not in dispute before us. The Tribunal, however, held that since the assessee was following the mercantile system, he was liable to pay tax on the interest which was earned by him in the relevant year, and not in the year of determination by the High Court. This question, raised by the assessee, is not required to be examined in much detail, since this High Court in a case, namely, Director of Income-tax (Exemption) v. Goyal Charitable Trust [1995] 215 ITR 672, had an occasion to examine a similar question which was as under: "Whether, on the facts and in the circumstances of the case, the Income-tax Ap....
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....he event of the acceptance of the appeal of the Government. It is thus apparent that the principles laid down by the apex court (see [1986] 161 ITR 524) and by this court (see [1985] 154 ITR 478) are also applicable to the facts and circumstances of the present case." We may quote the relevant portion of the Supreme Court decision in the case of CIT v. Hindustan Housing and Land Development Trust Ltd. [1986] 161 ITR 524 as under: "In the present case, although the award was made by the arbitrator on July 29, 1955, enhancing the amount of compensation payable to the assessee, the entire amount was in dispute in the appeal filed by the State Government. Indeed, the dispute was regarded by the court as real and substantial, because the asses....
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....arned counsel for the Revenue submitted that in view of the Supreme Court decision in Babulal Narottamdas v. CIT [1991] 187 ITR 473, the interest which was earned by the assessee is required to be charged in the relevant year and not on the date when the court made the order finally. In that case what was deferred was not the accrual of the right, but the date of payment. As such, the right to receive the remuneration could not be said to have arisen on the date of the judgment of the High Court. The instant case is not one where merely the date of payment is deferred. Here, the entire right to receive the same was in question and jeopardy. The right accrued to the assessee when the award was affirmed by the High Court. Therefore, the afore....